Who Is Responsible for Future Premium Payments, Me or the Viatical Company?
Many articles talk about the viatical settlement process, but not many discuss what happens after the viatical company purchases your policy. For instance, do you have to stay updated on your former policy? Who becomes responsible for paying the premium payments? Here’s a closer look at what happens after your settlement is finalized.
Why Does the Viatical Company Take Over Premium Payments?
To get a settlement from a viatical company, you sell them your life insurance policy. The viatical company looks at the details of your policy as well as reviews your medical records. They do this to verify the information you’ve initially provided. Then, they provide an offer amount for your settlement. If you are happy with the offer, you sign the final paperwork, and at that point, the viatical company becomes the new owner of your insurance policy. As the owner of the insurance policy, the viatical company is responsible for making all future premium payments.
What Happens If the Viatical Company Stops Making Premium Payments?
If the viatical company stops making payments, your policy goes inactive, and the company won’t be able to collect the face value of the policy. However, this does not affect you. Once the viatical company pays you a settlement, you never have to worry about your policy again.
In most cases, however, this is unlikely to ever happen. The only situations where a viatical company might stop making premium payments would be in cases where the company is becoming insolvent or going bankrupt, but again, as you already have your settlement, this does not affect you. Once you receive the payment, you can enjoy your funds worry-free with no strings attached.
What Are Your Obligations After Selling a Life Insurance Policy?
As indicated above, the viatical company takes over payment of your premiums when you take out a viatical settlement, and you no longer you have to worry about those monthly payments. That saves you money and reduces some of your financial burdens. On top of no longer being responsible for costly, premium payments, you now have money from your settlement. You can use the funds from your viatical settlement however you like. Whether you choose to pay off medical debts, set up college funds for children or grandchildren, or take a vacation with family, the funds are yours to do as you please.
Once you sell the policy, you have no further obligations to the insurance provider or to the viatical settlement company. You can simply focus on your health and your family, and you can use your settlement to ease financial burdens, explore new treatment options, or free up extra time to spend with your family.
At American Life Fund, we help people get the funds they need now. To learn more about working with a viatical company, contact us directly by calling 877-226-9836 today. Or use our online form to get an instant quote for your life insurance policy.